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M7T - Mach7 Technologies

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M7T raised $22.9 million (net of costs) in the quarter. This includes the recent placement ($3.7 million) and institutional component of the entitlement offer ($19.7 million), less costs ($1.0 million), together with proceeds from the exercise of options ($0.5 million). Next quarter result will include funds received from the retail component of the entitlement offer of $10.9 million (net of costs).

On 14 July it had completed the acquisition of Canadian company, Client Outlook Inc. for A$40.9 million. Immediately post acquisition, Mach7 had $19 million cash on hand, after allowing for estimated acquisition costs which have yet to be paid.

Client Outlook provides a unique zero-footprint viewing and integration platform distinguished as the first healthcare Smartviewer, known as eUnity. By combining Mach7's suite of solutions (including Mach7's vendor neutral archive, universal worklist, and workflow engine) with the industry leading eUnity diagnostic and enterprise viewer, the Company will provide one integrated end to end platform for the entire healthcare enterprise. Mach7's long-standing partnership with Client Outlook has, over time, resulted in the development of seamless integrations between the companies' respective platforms.

Mach7 intends to continue its investment in R&D to further tighten this integration and enhance the capabilities of the new enterprise imaging solution so it will help customers adapt more quickly to the challenging and rapidly changing healthcare environment.
 
Q4 Highlights:

• Free cash flow generated of $3.6M for Q4 and $4.5M for FY20
• Cash on hand at 30 June 2020 $48.9M, boosted by the raising to fund the acquisition of Client Outlook completed in July
• New sales orders of $9.2M for Q4 and $19.4M for FY20
• Two customers go live on Mach7 Platform during quarter
• FY20 results expected 27 August, with >$18M of revenues, and the first positive EBITDA full year result
 
Cash & cashflows
The Group reported cash balances as at 30 June 2020 of $48.9 million (2019: $2.3 million). The increase of $46.6 million is largely attributable to funds raised from investors of $42.6 million and positive free cash flow generated for the year of $4.7 million (2019: -2.9 million). Mach7 met its stated target and delivered its first (since listing) positive free cash flow result.

Net current assets
The Group reported positive net current assets at 30 June 2020 of $46.9 million (2019: $0.7 million). The increase in net current assets of $46.2 million (6340%) is largely attributable to two capital raises conducted during the current year which contributed $41.1 million (after costs) to cash reserves.

Net assets
The Group reported positive net assets balance at 30 June 2020 of $53.5 million (2019: $10.4 million). The increase in net assets of $43.1 million (416%) can be attributed to the increase in cash reserves, which is offset by the amortisation of intangible assets and associated deferred tax liability of $2.9 million during the current year. These intangible asset and deferred tax balances will be fully amortised by 30 June 2023.

Profitability
The Group has reported its first full year profitable result, of $0.2 million profit after tax (2019: loss $7.1 million), and $3.3 million of Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) (2019: loss 4.1 million). This significant increase in profitability is largely due to the increase in revenues during the year...
 
It's nice to post a bullish chart and M7T fits the bill perfectly.

m7t300820.PNG
 
agree
with baf, ocl, rff, bbn.
tpc another that broke resistance (a bit too quickly for me atm)
was going to post some charts on ivc as most of the chart damage is historical (period of 2 to 3 years prior to february this year) but unsure if any reversal is just yet (pfp included in that statement)
soz for chucking all this here.... but i like m7t.
 
 
I have followed them for a while, they are on my 4C watchlist to see if they become an investible business. Still burning large piles of cash, so not there yet.
 
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